Essentials of Economics (8th Edition)

Chapter 24

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The theory of liquidity preference states that the... more

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The reduction of government spending would shift ... more

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If people become pessimistic about the future, ... more

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In the money market, when the central bank ... more

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If the government increases its expenditure, then ... more

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The central bank funds rate is not independent of ... more

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; The interest rate is held constant, and there ... more

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If the interest rates were allowed to adjust, the ... more

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Government spending as an automatic stabilizer ... more

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The theory of liquidity preference is the theory ... more

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A decrease in money supply shifts the money supply... more

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There could be a rise in AD by a larger margin ... more

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If policymakers do nothing, the aggregate demand ... more

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The automatic stabilizers areThe tax ... more

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A permanent tax cut will put more money in the ... more

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The government should increase spending by billion... more

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The central bank’s commitment to maintain a fixed ... more

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